...Tesla has significantly front-run and outperformed the S&P500, eventually that front-running comes to an end as prior lofty growth expectations are unmet.
...Front-running means Tesla has overshot and gone into significant over-valuation early on due to 'game-changing' growth expectations on EVs (similar to market reaction to AI today) and when those growth expectations are unmet, mean reversion takes place. That mean reversion must mean Tesla stock price needs to retrace back to reflect new and more moderate growth going forwards. It does not mean Tesla won't sell more cars, it does mean the end to Tesla, it does not mean they won't be a force to reckon with in the EV space.
...and likewise, the same applies to lithium because the lithium story, and hence lithium stock prices received blue-sky exuberance when EV exuberance ran supreme. Now that EV industry moves away from the initial high growth phase, lithium stocks are undergoing the same mean reversion as EV stocks. It does not mean there won't be any growth for lithium demand, it does not mean there won't be price increases albeit moderate ones for lithium.
...and this is what lithium market participants ought to understand. If people pay too much for a stock that was valued ahead of itself, they could lose money and stay losing for a longer period of time, as lithium industry goes into a protracted winter hibernation.
